II.2.11 Expected Costs Associated
with the Operation of the Registry(RFP
Section D13.2.11)

The costs expected to be associated with operating the registry
are variable with respect to registration volume, SRS queries, Whois queries,
innovative designs of the registry, the number of ICANN accredited registrars
and the ability to provide the highest levels of service.

Pending further analysis, and in consideration of the unique
nature of the .geo application, a market-based cost of $6.00 annual fee per registration
is proposed for all forecast probability cases.The cost elements included are described below.

Staffing includes all
employee-related expenses, that is, the associated labor, benefits, and
administrative support.

Communications includes all bandwidth and
capacity requirements at the SRS data centers and the nameserver sites.
JVTeam's contracts with multiple communications providers to share its
communication lines, rather than being reliant on a single provider. This
protects each phase of the system from outage due to a communication provider's
backbone outage.

Other Direct Expense including all other
anticipated costs with operating the registry including travel, marketing, legal
and facilities expense.

Hardware refers to the capital equipment
required for the SRS data centers and nameserver sites. This includes, but is
not limited to, multiple servers, routers, load-balancing equipment, disk
arrays and firewalls.

Software expense captures both the
custom and third party software developed and purchased to implement and
operate the registry. This covers the creation of XRP, to replace the current
flawed RRP platform, while adding feature functionality.

The above assumes
that the domain name registry costs associated with a .geo registration are
similar to those existing TLDs in the marketplace (query levels, connectivity,
system, processing requirements are similar).

The following enumerate the expected costs with operating
the .geo registry:

Staffing:
$2.5 10 million

Server
Capacity (Hardware): $19 38 million

Facilities:
$1 4 million

Communications:
$0.4-2.5 million

Other
: $12 26 million

II.2.12 Expected Revenue
Associated with the Operation of the Registry

Please refer to Section II.2.5, which describes not only the
demand for registry services, but also the expected revenues.